Building Your Credit Score and Leveraging Financial Opportunities

Graham shares his journey from having no credit history to building a strong credit score. He explains the importance of credit scores, factors affecting them, and how to build credit from scratch. He debunks common credit myths and discusses the difference between good and bad debt. The video concludes with a call to action for viewers to manage credit responsibly.

What was the speaker's initial belief about credit?

• Credit was unnecessary and foolish.

• Credit cards are only for emergencies.

• Only wealthy people should use credit.

• Credit is essential for large purchases.

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What range do credit scores typically fall within?

• 100 to 800

• 500 to 900

• 300 to 850

• 200 to 800

What does a high credit score indicate to a bank?

• Low likelihood of repaying loans

• High financial risk

• Lower risk of defaulting on loans

• Less reliability

Which factor does not affect your credit score?

• Credit utilization rate

• Diversity of credit accounts

• Length of credit history

• Annual income

What is the purpose of a secured credit card when starting out?

• To invest in large assets

• To pay lower interest rates

• To immediately boost your credit score

• To start building credit history

What is a common myth about improving your credit score?

• You need to carry a monthly balance

• You should have only one credit card

• Paying off your balance in full is bad

• Checking your score lowers it

What should you not do with a credit card according to the speaker?

• Use it for everyday purchases

• Pay off the balance each month

• Close old accounts

• Apply for multiple cards at once

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What is considered 'good debt' according to the speaker?

• Debt from luxury vacations

• Loans that generate more money than their interest

• High-interest credit card debt

• Debt from non-essential purchases

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How can having more credit cards affect your credit score?

• Increases the interest rates on loans

• Has no effect on the credit score

• Decreases the score due to more debt potential

• Increases the score by lowering utilization rate

Why is it important to not close old credit card accounts?

• To use them in financial emergencies

• To maintain a higher credit limit overall

• To keep the credit history which helps the credit score

• To avoid paying fees